Valmiki corporation scam: ED arrests Ex-Karnataka minister Nagendra

The Enforcement Directorate Friday night arrested former Karnataka minister and Congress leader B Nagendra in connection with a money laundering probe related to the misappropriation of Rs 94.73 crore in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. According to sources,the four-time MLA would be produced before a court on Saturday. Earlier on Wednesday, the ED had conducted searches at the residences and offices of Nagendra and Scheduled Tribes Development Corporation chairman and Congress MLA Basanagouda Daddal, in Bengaluru and Ballari.
The ED had also questioned the personal assistants of the two Congress leaders on account of their alleged knowledge of the diversion of the Rs 94.73 crore. The misappropriation came to the fore after a corporation official P Chandrashekaran allegedly involved in auditing and coordinating with Union Bank of India died by suicide on May 26 this year detailing the fraud and the people involved in a six-page note he left behind. Following the scam, Minister of Tribal Welfare Nagendra resigned from his post.
The Karnataka Police had constituted a CID SIT to probe the scam. So far, 11 people have been arrested and stolen funds worth Rs 40 crore which were diverted to 18 bank accounts of fake companies have been seized.Nagendra resigned as the scheduled tribes welfare minister in the state cabinet on June 6 following allegations that Rs 89.7 crore was illegally transferred from the corporation's bank account to several bank accounts in Hyderabad.Union Bank of India had also filed a complaint with the CBI in connection with embezzlement of money belonging to the Corporation involving its MG Road branch, following which the premier investigation agency had initiated a probe. 

(State Correspondent)